rebebecca: thanks for joining us. this week we wanted to focus on baltimore. the people and businesses impacted by the ride and the weight forward. you will hear the voices of small business owners who lost everythingnd where they can forgive, especially those they knew were doing the lootining. we will also have some perspective on the cy's history. first, i want to talto some of

th peoe w knonow these chchallenges firsthand. one block from the burnt out cvs, the stench proclaims baltimore is the greatest city in america. >> no jobs. rebecca: he travels one mile every day. he grew up in the other baltimore. >> you have young kids out here who are just angry at everything, everybody. no politician,ic no athlete, no

civic leader, even the pastor can change that. rebecca: everyone we spoke to seem to agree withhis. he says the residents need jobs recreational alternatives, and most of all, better schools with more access to early education. baltimore is such an important city to our region. when somebody says what do we do to fix this, are there any answers that can be tangible? >> i don't know if we will make the commitment. let me start with the problems. the president mentioned we cannot all the police responsible for everything and i agree. this problem has been around for a long time.

president johnson started the war on poverty. as you can see, not much has changed in 50 years. in this area of west baltimore we have a large concentration of poverty. that is the difference in a lot of areas. you have schools that don't work, kids out of work, people who cannot find jobs, it creates a culture that is hard to break out of. there has not been the commitment to address that. rebecca: you say you have to find more jobs for the kids, more recreational opportunities but yoyour focus is on education. what can be done? >> we need to get better teachers, better facilities. 50 years ago we had the black white achievement gap.

that is changiging because of the growing incomenequality. we havpeople at the lower end of the income scale and people at the top. people at the lower and are not getting access to education resources. these kids are not going to break out of that cycle and we need to address those problems. rebecca: you had an op-ed published morning about this very problem, saying we e are seeing this achievement gap tied to poverty. how is it growing? >> there is a recent study from stanford uniniversitabout the income achievement gap, which is growingignificantly. probably 40% higher than it was 30 years ago. this means kids at the lower inme scale scores lower on

tests. rebecca: why is it g growing? >> they don't have the facilities it is not just the schools but the communities where the school lives. a hopkins researcher did a famous studyn this 50 years ago and we have not learned from at. itit said that kids are affected by as much as what happens i their community as what happens in their schools. if we do not have better facilities or better jobs, we will nothange that. rebecca: you served in the house of delegates, you are a social worker for many years. you are now speaking about these issues on education and income and poverty. e you overwhelmed with frustration, do you see light at the end of the tunnel? >> right now i am over

with frustration. it is a president himself when he talked about dealing with problems in the schools, you can increase the testing students take, but that will not help. in some ways, the policymakers have their head in the sand when it comes to addressing problems in school. it is not just about testing but the whole package. rebecca: if you were with business leaders who we part of the solution, what would you tell them could be done? >> early childhood education. if they are below reading level by third grade, we cannot save them. we have to get them early and get them gd teachers, not just babysitters. early childhood education is important.

we need employment in some of these communities. kids need to see a way out. rebecca: what should the business community do? >> they should wortogether to find employment for kids, summer employment opportunities, get kids in the culture of thinking about jobs, work, what it takes to keep a job. rebecca: it is clie to say b it is a talef two cities. we drove here from symphony hall, so many beautiful neighborhoods, wealth, and dodowntown is a brant community where it used to be polluted andnd not used for commercial purposes. should the business community be scared of what is happening in baltltimore? >> they should see i it as an opportunity. we have some great busesses here and now they have to pick it up. ththey have to look at other opportunities to get kids here involved ijobs not firing out

overseas or something like that.t. rebecca: he is leaving baltimore, living sl texas. he told me tt before the riots was tired of the anger and unrest divididing the homemetownwn that he ves. now he says it will have to be someone elseerving as the examplef accountability, faith, a andard work overcoming the obstacles life in the inner-city. wh we return, we look at the small sinesses impacted by the violenence.. and we examine how long it will take for the city to overcome the damage.

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rebecca: welcome back. our colleague has the s story of a man who o owns a sporting goods store that was gututted by looters this week as they oked on helplessly. what was their plan and can they forgetive? >> mark and harvey have owned his shoe business oror 35 years. >> i am more sad than athing here you cannot be angry. >> all they could do was watch from their homes, remote pictures from the security cameras. >> smashed the window and hundreds of people started pouring in.

>> this is what t they found. a sea of boxes and shoes. >> looters, for six hours, wiped them out. >> people going in and out, and it was unbelievable. >> $1 million worth of inventory scattered or stolen. >> all this merchandise, all these people that work for us do not have a job. it will take months to getet this situated. the police were three blocks away. >> 30 years in the city they love. what hurts most is looking at the surveillance video, they recognized once loyal paying customers. >> hundreds and hundreds of people in here like it was a department store. >> still, they say they will clean up, rebuild, and forgive. that is thbaltimimore way. >> its what it is, we have to

go on. rebecca: the violence has scared aw mantourists. we he also seen signs that the writining is r robbing the c city of conventional t traffic. the challenge lies in cleaning up the city's reputation as well as the streets. >> charm city's crown jewel financially treading water. the maryland science center and national aquarium closed their doors. dozens of field trips canceled, thousands of dollars lost. he has a wife and three children at he. >> this is certainly not putting us in a good light. does not help wiwith tourism orr bringing in businesses. >> larry hogan is now fearful of lost revenue.

two conventions canceled and a third now rescheduled. t. rowe price cled its downtown headquarters on tuesday, shifting 1200 employees to satellite o offices. >> we feel safafe. >> thiss colorado couple visiting says that baltimore mains a wonderl city. > we are about to jump on the water taxi. it is a good place to visit. >> last year, 24 million people visited baltimore spending $5 million. tourism is a huge cornerstone to the city's economy. now they hopope that theiots do not become permanently attached to t their city. rebecc when we come back getting baltimore ready for business again. stay with us for some smart

insight and analysis.

rebecca: welcome back to this special edition of "washington busiss report we are the washington baltimore reregion, so wther you live or work in the area, , all of us he ties to the city tt ofoffers so mumuch to the reason. and it is notust baltimore torn apart by issues of race and economic disparity. this week, we wand to stop to

emily badr, a reportert "the washington post" who had a smart take on the issues found in -- challenging baltimore. you wrote about the challenges in baltimore. we are not trying to tackle the police issues or freddie gray, but we are oking at the poverty issue which so manyay are part of the riding and frusustration in the city. talk abobout some ofhe problems baltimore faces in the inner-city. >> as i think about the event that led up to today, it is very similar to what has happened in other big citities across america. in chicago, boston washington, basically policies and active desions that have been made by government and institutions over decades which have contributed to making these deeply poor urban neighborhoods isolated,

and you think a lot of times we think about the urban ghettat this natural phenomenon that pops up in cities. the reality is, these places have been manufactured very explicitly by some bad decisions over the years. rebecca: i was in baltimore this weekend. we are taking this on frid and we don'know what will happen this weekend, but alrey we have seen some flashpoints with homicide charg against police officers and others. so many people i talked to in baltimore that have tried to work hard and get t the best education they could despite the schohools say time and again it comes back to jobs. now there is anger at each other in the neieighborhoods one young man i spoke to said i had to leave to get a job because my neighborhood did not have any. now the few jobs we had our burned down to the ground.

there is a sense of frustration and now the frustration is even larger. what is the immediate fix, is there any? >> the problem is so large because it is about education, housing, building wealth. part of the reason why we have these deeply poor places is because decades ago, we prevented the people that lived there before from buying new homes, getting mortgages, vingng to other parts ofaltimore, we made it harder for businesses to vest, for people to invest in the community. all of these decisions that acaccumulate over time and createe these places where there is so ttle hope fopeople. when we think about the solutions to that, we are trying to come up with solutions that would tackle all of those things simultaneously, which is an enormous challenge. rebecca: you are using the royal we. as a community, this is where we are in termof government

policy, business policy. we all have to be a part of trying to fix it. when we asked you to come on, i said i was a little heta for two white girls to talk about the pblemems that are being felt at her very real level by young black males. we have rtainly not walked in their footsteps, but i have spoken to sosome smart african-american leaders. one that inspires me is the president of the university of maryland ultima county. he has been a leader in the community. he has a program that deals with 500 boys every year. second graders to seniors in high school ththat are already first-time offenders were they trying to help them get past their obstacles but heays it is n not just a matter of jobs. he says that for the program to work he needs the kids the first part of the day, makeke sure they get home from school, often

mes they do not have a home e to go home to, and if they d do, it is a single mother who is up late working. he needs to o make sure that they do not g io drugs and it is morning, noon, and night and there are not enough people stepping up to take responsibility for all parts of the day. >> that is an example of what a holistic solution looks like. we havto be talking about whether r or not we are providing support or single mothersf they have children in these communities, job opportunities for single mothers. we should be talking about why single mothers exist in the first place. what i is happening so that so many men arere not available? maybe they are in prison, maybe they cannot find a job so they do not take very good mate. all of this has been tied up and want to start pulling on one of these threads, it connects to all these other ones.

anytime we try to solve these deeply ingrained problems that has built up over decades, it will never be easy to tackle one part of it. rebecca: we ink it is too eat to take on and then i look at some people like ted leonsnsis o has been a mentor to young people. and each of us can do o part. businesses can go to these schools and say your are 50 jobs that we will direct to the kids that want them whoill show up and work hard. there are things that each of us can do. some of the things that you wrote about our s smart and trace a history of shockwaves of tm overwhelm the community. i recommend to all the viewers that they read what you have been writing. hopefully we c can talk to a lot of oer people in the days to come. thanks for joining us. we will be right back.

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rebecca:a: so what you thinknk about what is have en in baltimore and how it wilill forward as a commununity, economy, and as a region? one of the s smart voices i spoke to was mike gill. he fouounded -- soded a positive

note, saying it was sad to see wh was h happening this week butut working with governor hogan, determined to move forward. he says it will take all of us, not just one city, but the entire regio we all read thwashgton business journal and thehey often take a political pulse. thiseek they asked what your opininion was on going to baltimore. will you cancel your plans, will you continueue to go and not let it a affect you, or wilill you go and beore cautious? i votethat i would go t be cautious. it is still in the beautiful city it was fufull of promise. i was surprised to see that 67% for r canceling their plans. don't do that. lets say this is your tv and these are the channels you pay for with cable but these are the types of channels you actually want to watch what if you could pay for what you

want, and not for what you don't so you could get kids channels sports... or entertainment mix and match, or get them all. now fios brings you a totally new way to customize your tv starting at $74.99 -- including internet and phone. cable st gives you channels. fios gives you choice.

>> the secret service must be prepared to confront end of feet evil thing, including unmanned aircraft. >> a postal worker from florida trying to make -- he pointed a gaping hole in d.c. airspace security. >> there was no single belly button to push. >> the office of management and buet. what is missing from that law? we ask the original author. >> we see high-end military technologies only possesessed by the most advanced foes find thei way into arsenalsome up with nonstate actors and eviously much less capable militaries. isrris: the secretary of defensese played --